China Moves to Encourage
Investment in North Korea

By

Steve Glain Staff Reporter of The Wall Street Journal

Updated Sept. 16, 1996 12:01 a.m. ET

RAJIN-SONBONG, North Korea -- China, wary of potential fallout from North Korea's sputtering economy, is encouraging Chinese businesspeople in China, Hong Kong and elsewhere to support this ailing state with trade and investment.

On Sunday, North Korea announced commitments and signed contracts valued at nearly $300 million -- largely from Chinese and overseas Chinese companies -- to develop a free trade and investment zone Pyongyang is promoting to help reverse years of economic decay. The announcement followed...